New Delhi: Rising fuel costs, tight capacity and thin margins are already pushing up airfares amid the ongoing Middle East conflict, the International Air Transport Association (IATA) said on Tuesday.
"Without knowing the length and intensity of the war in the Middle East, it is impossible to quantify its full impact on airline prospects. But some things are already clear: fuel costs have risen sharply, and with tight capacity and thin margins, airfares are already rising," IATA Director General Willie Walsh said.
The global airlines' body, which represents around 350 carriers including Air India, IndiGo and SpiceJet, said global passenger demand-measured in revenue passenger kilometres (RPK) rose 6.1% year-on-year in February.
Capacity, measured in available seat kilometres (ASK), increased 5.6% over the same period, while the passenger load factor reached 81.4%, the highest ever for February.
"February was a strong month, indicating that demand fundamentals remain positive," Walsh said, adding that capacity deployment is being adjusted, particularly for routes affected by fuel supply issues.
Capacity growth projections for March have already been revised downward to 3.3%.
"Without knowing the length and intensity of the war in the Middle East, it is impossible to quantify its full impact on airline prospects. But some things are already clear: fuel costs have risen sharply, and with tight capacity and thin margins, airfares are already rising," IATA Director General Willie Walsh said.
The global airlines' body, which represents around 350 carriers including Air India, IndiGo and SpiceJet, said global passenger demand-measured in revenue passenger kilometres (RPK) rose 6.1% year-on-year in February.
Capacity, measured in available seat kilometres (ASK), increased 5.6% over the same period, while the passenger load factor reached 81.4%, the highest ever for February.
"February was a strong month, indicating that demand fundamentals remain positive," Walsh said, adding that capacity deployment is being adjusted, particularly for routes affected by fuel supply issues.
Capacity growth projections for March have already been revised downward to 3.3%.
